Dáil Éireann Debate, Wednesday - 13 May 2026
76. Deputy Réada Cronin asked the Minister for Enterprise, Tourism and Employment if he is aware of the layoffs at a company (details supplied); the steps being taken to engage and protect workers from said layoffs; and if he will make a statement on the matter. [35746/26]
Amharc ar fhreagraAs the Deputy will be aware, on 27 April 2026, Covalen informed its employees of its intention to reduce its workforce. The details are a matter for the company. The proposed collective redundancies arise from a shift in client demand, resulting in a reduction in required services and a need to right-size management and support functions.
My foremost concern is the potentially impacted employees and their families during this uncertain time.
IDA Ireland has been engaging with the company in Dublin at a senior level to ensure that the company is aware of the full range of available IDA supports that can be availed of at this time.
IDA Ireland has established internal processes for managing potential and actual job loss situations with its client companies. This involves proactive engagement with site leadership of the company and its parent company to explore options to avoid or minimise any job losses.
In the event of any announced or pending job losses, IDA partners with other support agencies at a local level to implement the Job Loss Protocol. This provides a coordinated response by relevant Government Departments and agencies at a local level to support impacted employees. The types of supports that may be provided include:
• Provision of a detailed skills profile for the site; a talent catchment map and timings for when individuals will be available, provided by the company.
• Identification of other employers who may be hiring across IDA and EI client companies.
• Sharing of skills profiles with other companies who may be hiring and direct engagement with HR departments, when appropriate through IDA and EI.
• Briefings by local Department of Social Protection/Intreo officials to impacted employees on social welfare and employment support services to support impacted employees’ transition to new employment opportunities.
• Identification of training and further education opportunities for employees (ETBs; Skillnet; Universities)
• Exploring opportunities to start your own business through LEOs and Enterprise Ireland.
IDA Ireland is also fully respectful of the consultation process that may be underway by any company and its employees or representatives following any announcement or proposed announcements.
Ireland has a robust framework of legislative protections and supports for workers who are impacted by redundancy.
The Redundancy Payments Act 1967, as amended, requires employers to pay a statutory redundancy payment to eligible employees who are being made redundant and have more than 2 years’ service.
The Protection of Employment Act 1977, as amended, imposes certain legal obligations on employers proposing collective redundancies. Employers are required to consult and provide information to employees' representatives for a 30-day period, before any notice of redundancy can issue.
Employers proposing collective redundancies must also notify the Minister for Enterprise, Tourism and Employment at least 30 days before the first dismissal takes effect.
Collective redundancies arise where, during any period of 30 consecutive days, the employees being made redundant are: 5 employees where 21-49 are employed; 10 employees where 50-99 are employed; 10% of the employees where 100-299 are employed; 30 employees where 300 or more are employed.
Where redundancies occur which fall below collective redundancy thresholds, employers are still legally obliged to conduct the redundancy process fairly and to use reasonable selection criteria in selecting employees for redundancy. In accordance with the principles of fair procedures and natural justice, any such process should normally include a consultation with potentially affected employees.
If an employee believes their employer has failed to comply with collective redundancy rules or they believe their employment rights have been breached, they can make a complaint to the Workplace Relations Commission (WRC). For most employment rights issues, complaints to the WRC must be made within 6 months of the date of the alleged breach. The WRC can extend this time period to 12 months if the employee can demonstrate reasonable cause.
